The ICL on Monday announced Lara as its first big signing, two months after his name was initially linked with the group. Warne's manager James Erskine said he had been in talks with ICL officials including Tony Greig.

"They haven't offered what we have asked for, so negotiations are proceeding," Erskine told the Australian. "Provided the terms and conditions are right, Shane Warne will play, but it's a long way off before we get the contract signed." The paper reported that Warne's proposed pay package was worth up to $2 million.

McGrath's manager, Warren Craig, said he had met with ICL officials some time ago and although there had been few developments since then, this week's events were likely to speed the process up. "We certainly haven't ruled it out," Craig said.

"Now Lara has signed, things might start to hot up a bit. Things could start to move over the next week or so." However, Craig said the ICL had given no indication what salary it would offer to lure McGrath out of retirement six months after his final ODI appearance.